Westamerica Bancorporation (WABC) investor relations material

Executive summary

• Net income for Q2 2025 was $29.1 million ($1.12 EPS), down 18% year-over-year and 6% sequentially; six-month net income was $60.1 million ($2.29 EPS), down from $71.9 million year-over-year.

• Lower net interest and loan fee income, driven by reduced average balances and yields, contributed to the earnings decline.

• Operating efficiency remained strong, with 39% of revenue spent on operating costs in Q2 2025; efficiency ratio rose to 39.3%.

• No provision for credit losses was recognized in Q2 2025; nonperforming assets totaled $5.0 million at quarter-end.

• The company repurchased 1.1 million shares for $57 million and paid $24 million in dividends in the first half of 2025.

Financial highlights

• Net interest and loan fee income (FTE) for Q2 2025 was $54.6 million, down 14.9% year-over-year; six-month total was $111.0 million, down from $130.2 million.

• Noninterest income for Q2 2025 was $10.3 million, down 1.8% year-over-year; six-month total was $20.6 million, up marginally year-over-year.

• Noninterest expense for Q2 2025 was $25.5 million, down 2.3% year-over-year; six-month total was $50.7 million.

• Return on assets for Q2 2025 was 1.93% (vs. 2.18% prior year); return on equity was 11.24%.

• Book value per share at June 30, 2025 was $36.03, up from $30.57 a year earlier.

Outlook and guidance

• Management continues to monitor inflation, monetary policy, and industry volatility, noting potential risks from liquidity, deposit outflows, and unrealized losses.

• The company expects to maintain regulatory capital levels well above minimums and continue quarterly dividends.

• Management highlighted continued focus on low-cost operations and strong capital ratios exceeding regulatory guidelines.

• Forward-looking statements caution about risks and uncertainties, including credit, interest rate, operational, and market risks.